The electronics industry said its 2017 export target of $30 billion is within reach based on data recorded as of July, driven by global moves towards greater automation and technology upgrades.
Semiconductor and Electronics Industries in the Philippines Foundation, Inc. (SEIPI) President Danilo C. Lachica said during a CEO forum on Monday at the Sofitel Hotel in Pasay City that electronics continue to drive Philippine exports, with $19 billion worth of revenue as of July.
“We’re a global business so it’s a digital economy (now) and a digital economy requires electrical components so it’s good for the industry. We expect growth as driven by the requirements of the digitization industry — the industrial revolution 4.0,” he added.
The Philippine Statistics Authority estimates electronic equipment and parts to be third among the top exports, growing 71.2% year on year in August.
Electronic products grew 10.8% year on year to P21.19 billion in the first eight months, with semiconductors accounting for the largest share of exported products.
Semiconductors grew by 10.6% to P15.22 billion.
“At the rate we’re going, we’re probably going to hit $30 billion because we projected a 6%-8% growth for 2017 (in export revenue). But we’ve hit ($30 billion) twice before in 2007 and 2010 but… we actually went as low as $22 billion in 2011. We’re on the rise this time and we hope to hit the $30 billion mark.” Mr. Lachica added.
Mr. Lachica said that the 2017 revenue total will be released by February, two months later than usual. Likewise, the projected growth for 2018 will be released at around that time as well.
“The way we do it is we talk to our member companies; the big member companies and we talk about their growth projections and actually we take a weighted average and that is how we come up with the range. But the thing is that’s not perfect science. Last year we projected a 6%-8% right after the elections since a lot of things happened that we actually ended up flat. But we think that we’re recovering this year, hence the 6%-8% growth.”
SEIPI Chairperson Virginia Melba A. Cuyahon in her speech said that industry growth will continue until 2020 due to the growing consumer confidence.
Ms. Cuyahon said that the top segments for the electronics industry in the near future are auto electronics, smartphones, and sensors used in phones.